Dubai has created a stable, sustainable economic ecosystem for people and companies to enjoy ultra-comfy living and lifestyle, launch start-ups, tap new opportunities and expand business beyond borders.
Over the years, Dubai has demonstrated to be resilient to global economic fluctuations and earned prestigious reputation as one of the world’s leading lifestyle and business destinations, garnering attention and confidence of global investors.
According to a report by Dubai Investment Development Agency (Dubai FDI) which is an agency of Department of Economy and Tourism (DET), Dubai has retained its top global ranking worldwide for attracting foreign direct investments in the year 2021. This ranking is based on ‘fDi Markets’ data of Financial Times which is a leading global data source on cross border greenfield FDI investments.
Dubai has surpassed major financial cities, such as London, Singapore, New York and Paris and continues to enjoy its status as a global financial hub.
The Real Estate market in Dubai has had the privilege to be rewarded by this and enjoy and reap the benefits of FDI.
Even Covid-19 Pandemic could only have a short-term impact on the Real Estate sector of Dubai. Dubai’s excellent governance and administration controlled Covid during the entire the entire pandemic which helped an event like Expo2020 to open its doors to the world.
Expo2020 Dubai, largest global business expo event of its kind that drew about 24 million visitors contributed to Dubai’s success story and made headlines as world’s most popular destination in TripAdvisor’s Travellers choice awards 2022, a leading global tourism portal.
The new UAE government reforms and policies implemented has strengthened the position of reviving the UAE economy by encouraging visa options for career, living and investments that has led to a significant boost and momentum in this region.
Dubai’s 2040 Urban Master Plan will further attract and factor to sustainable living, aid future growth and development and boost economy of this country.
A major population of Dubai consists of expats and with a steep rise in rental pricing today residents are seriously considering giving a thought of availing the various investment options available in the current market.
With ‘Rent to Own’ and Budget friendly EMI options one could choose the off-plan property market for both short- and long-term investments with good returns and profits.
According to Dubai Land Department (DLD) DXB Interact Property Price Index 20221-2022 you can see how off plan property has picked up against ready properties in Dubai.
Off plan-vs-Ready-property-prices-index
Image credit: dxbinteract.com
Off plan-vs-Ready-property-prices-index
Image credit: dxbinteract.com
Let’s now throw some light on some more prominent reasons to understand as to why one should invest in an off-plan property in Dubai.
1. Low Price
It goes without saying purchasing a property when it’s just gone on floors is an affordable option when it comes to hitting your pocket.
Off Plan or as the word suggests also called as (not yet constructed) projects and are always sold at a relatively low price compared to much later time (after construction).
2. Flexible Payment Options
Normally during an Off-plan phase developers usually come out with great attractive offers and flexible payment plans which makes the deal quite affordable and budget friendly for a buyer or investor.
Besides it gives you the financial flexibility and freedom that you will probably not come across at a later stage of any project development.
Usually Schemes such as 50/50 which is up 50% down payment before completion and remaining 50 % payment upon completion and 1% per month etc are some of the payment plans that are normally laid out which gives a buyer major added advantage to consider.
These days the down payments could range anywhere between 20% to 80% prior completion.
3. High ROI
Dubai has only seen expansion and rise hence with a steady growth of the expat’s population, boost in economy and growth in business opportunities the demand for real estate supply will continue to rise exponentially.
One can only expect a steady and sharp rise in the Property prices and Rental Incomes and this demand is what makes Dubai a high ROI destination.
4. Capital Gains
When you invest in Off plan you will naturally see a visible marginal rise in the market value of the property even before its completion stage.
This itself is a great reason for you to consider even for short term investment as in an event should you decide to dispose the property you can at least choose to go ahead with some capital gain and quick turnaround profits.
5. Protected Laws
One cannot live in a state of denial that Off plan does come with its own share of risks. OfCourse, it does but all thanks to Dubai Land Department (DLD) and Real Estate Regulatory Authority (RERA) that encapsulates the buyers with all possible measures and protected laws that prove to be great rescue factors against delays, cancellations or fraud.
One law facilitates provision for a buyer to make an off-plan property purchase at a DLD approved bank.
Another law puts a cap on the developer who must have 20% of funds for construction as a bank guarantee and 10% performance bond guarantor as a contractor.
There is no doubt that such reassurance from the governments well protected stringent laws trust is easily built within a buyer and its only matter of time that a buyer should leap their faith and consider taking wise and sensible decision by investing in off-plan properties in Dubai that actually prove to yield good returns.
